On July 5th, Hao Tian International Construction Investment (01341.HK) and Aceso Life Sci (00474.HK) announced that Aceso Life Sci and Hao Tian International Construction Investment happily announced that Hao Tian International Construction Investment has signed a non-binding letter of intent with the target company (as defined below), based on which Hao Tian International Construction Investment has expressed its intention to acquire and a major shareholder of the target company has expressed its intention to sell and to encourage other parties to sell. Wisdom Group Holdings Limited ("the target company"), together with its subsidiaries, is mainly engaged in the design and manufacture of zero-emission commercial vehicles, providing hydrogen fuel cell electric vehicles and battery-electric vehicles. The target company consists of approximately 49.42% of the total issued share capital.
Aceso Life Sci Group and Hao Tian International Construction Investment Group occasionally seek investment opportunities to diversify and enhance their asset portfolios, expand their sources of income and accelerate the overall growth of the groups. If the proposed acquisition is realized, it will help boost the business development of Aceso Life Sci Group and Hao Tian International Construction Investment Group.
As more and more governments around the world formulate specific plans to replace internal combustion engine ("ICE") vehicles and achieve carbon neutrality, public transport operators must invest in zero-emission transportation solutions. Aceso Life Sci and Hao Tian International Construction Investment believe that the field of commercial battery-electric vehicles (BEV) and fuel cell electric vehicles (FCEV) is gradually shifting towards environmental protection and are very concerned about sustainable development, especially Hong Kong's public bus services. It is expected that Hong Kong will accelerate the transition to zero-emission technology to comply with the Hong Kong government's commitment to achieve carbon neutrality by 2050.
On June 17, 2024, the Hong Kong government announced the "Hong Kong Hydrogen Development Strategy." Under the hydrogen strategy, the Hong Kong government will submit a proposed amendment to the legislation in the first half of 2025 to provide a legal basis for the production, storage, transportation, supply and use of hydrogen gas used as or intended for use as fuel. It will also prepare for the adoption of an internationally recognized hydrogen standard certification model by 2027 or earlier. The Hong Kong government will also promote regional cooperation, overseas investment, joint development or import of hydrogen energy; leverage the unique advantage of "backing on the motherland and connecting the world," and promote Hong Kong as a demonstration base for national hydrogen energy development, and assist the hydrogen energy industry to develop in the "Belt and Road" region. The board of directors of Aceso Life Sci and the board of directors of Hao Tian International Construction Investment believe that this proposed acquisition is a valuable investment opportunity for Aceso Life Sci Group and Hao Tian International Construction Investment Group, and also an opportunity to enter the zero-emission commercial vehicle market for diversified business portfolios.